Tajir Dost Scheme: Over 76,000 Traders Registered Amid Mixed Reactions
As of October 2024, 76,259 traders have registered under Pakistan’s Tajir Dost Scheme, according to the finance ministry. The program, launched in March 2024, is a voluntary tax initiative aimed at incorporating unregistered businesses into the national tax system, fulfilling IMF’s requirements. Major cities contributing to the scheme’s registrations include Lahore with 29,735 traders, Rawalpindi with 11,585, Karachi with 8,138, and Islamabad with 6,563 traders.
The Federal Board of Revenue (FBR) expects the scheme to generate Rs 400 to 500 billion annually. The FBR has called upon unregistered wholesalers, retailers, dealers, and shopkeepers to join the program.
However, the initiative has faced criticism from the business community, with many traders expressing discontent, calling the scheme “inappropriate” and deviating from existing procedures. Economist Dr. Khaqan Najeeb pointed out the disparity in the tax system, revealing that out of 3.2 to 3.5 million businessmen in Pakistan, only 300,000 are registered with the FBR, and a mere 150,000 regularly pay income tax.
Dr. Najeeb also drew parallels with a similar initiative introduced during the tenure of former Prime Minister Shaukat Aziz, which faced intense opposition and led to nationwide strikes. The economist warned that the current government’s approach is also raising concerns within the business sector.
Key Details | Information |
---|---|
Scheme Name | Tajir Dost Scheme |
Launch Date | March 2024 |
Traders Registered (as of Oct 2024) | 76,259 |
Cities Leading in Registration | Lahore, Rawalpindi, Karachi, Islamabad |
Revenue Target | Rs 400-500 billion annually |
Criticism | Business community discontent |
Economist’s Concern | Disparity in tax registration and payment |
This scheme highlights Pakistan’s efforts to broaden its tax base while addressing concerns from the business community.